LPC-1 Schedule A: Land Preservation Credit - Allocation Schedule and Calculation of Fee (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Form LPC-1 Schedule A reports Land Preservation Credit allocations by multiple donors and pass-through entities. It lists credit holders and their allocated amounts and calculates any applicable allocation fee.
Who files this form
Use Schedule A to report land preservation credit allocations if you are:
- One of multiple donors, including married spouses when both are on the deed.
- A pass-through entity allocating credits to people or other entities.
A separate Schedule A must be completed for each additional pass-through entity receiving a credit. If the credits come from more than one donation, file a separate Schedule A for each donation.
What you'll need
Have the following information ready:
- For a pass-through entity: its name, FEIN, and phone number.
- If a Tax Matters Representative has been appointed: the representative’s name and phone number.
- For each credit recipient: name, SSN or FEIN, street address, city, state, ZIP code, entity type, phone number, and allocated credit amount.
- The total credit amount allocated and any gifts to subtract for the fee calculation.
Enclose additional pages if needed. The Department recommends paying any fee with a certified check or money order.
How to file
- Complete Section I if you are a pass-through entity. If you appointed a Tax Matters Representative, check “yes” and enter the representative’s name and phone number.
- Complete Section II with the details for each credit recipient and the total credit allocated. Use one taxpayer per line per SSN or FEIN.
- For donations made on or before December 31, 2006, complete Sections I, if applicable, and II. Section III applies to pass-through allocations of credits from donations made on or after January 1, 2007.
- When a fee applies, enter the total credit allocated, less any gifts, on Section III, Line 1. Multiply Line 1 by 0.05 to calculate the fee on Line 2.
If the allocation is to more than 15 people or entities, the Department recommends submitting a CD or disc. Call (804) 786-2992 for the required spreadsheet format.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Combining joint donors on one line. Provide separate information for each person or entity. Credit is granted to one taxpayer per line per SSN or FEIN.
- Missing a separate schedule. Complete a separate Schedule A for each additional pass-through entity receiving credit and for credits derived from each separate donation.
- Charging a fee to separately listed owners. The instructions state that multiple owners listed separately on the deed do not owe a fee.
- Applying the fee to an older donation. The fee does not apply to transfers or allocations made in 2007 or later if the donation was made before January 1, 2007.
- Using a personal check without allowing for a delay. Personal checks may delay processing. The Department recommends a certified check or money order.
Questions people ask
Why does the schedule use 5% when the instructions describe a 2% fee?
The 2% fee is based on the appraised value of the donated interest. The credit is 40% of that value, so the equivalent fee at the credit level is 5% of the credit amount transferred or allocated.
Are allocations to nonresident owners exempt from the fee?
A pass-through entity is exempt to the extent it distributes credits to nonresident owners and applies those credits to its pass-through entity withholding tax. Credits distributed to resident owners and to nonresident owners who are not subject to that withholding tax remain subject to the fee.
Who can serve as a Tax Matters Representative?
A pass-through entity may appoint a general partner, member, manager, or shareholder. The Tax Commissioner may consult that representative about credits that have been allocated or transferred.
Does the transfer fee apply when an original credit holder dies?
For deaths on or after July 1, 2018, the 2% transfer fee does not apply to credits transferred from the person who originally earned them to a designated beneficiary or the next eligible person under the intestate succession rules described in Virginia Code § 64.2-200.